Free Trial

Eurodollar/Treasury Roundup, Bumpy Ride

US TSYS
Rates had a bumpy ride Monday, rallying off early lows into the NY close, support evaporating late.
  • Tsy yield curves rebounding from year+ lows (2s10s taps 61.463 recently vs. 57.076 low) around midday with better fast and real$ buying in 2s-5s after domestic real$ selling 2s and separately buying 5s around late morning.
  • Short end lead rebound early in second half, 30Y Bonds back to steady after Atlanta Fed Bostic headlines from Yahoo Finance interview: BOSTIC: 50-BP HIKE IS NOT MY PREFERRED POLICY ACTION FOR MARCH, Bbg
  • Saturday FT interview Bostic said 50Bp hike in March possible. “Every option is on the table for every meeting. If the data say that things have evolved in a way that a 50-basis-point move is required or be appropriate, then I’m going to lean into that," Financial Times.
  • US equity markets mostly gaining ground, SPX back to Jan 21 levels and north of 200DMA ESH2 topping 4489.0, DOW climbing 285.0 after trading weaker earlier. Contributing to modest risk-appetite, geopol-risk tied to Russia/Ukraine tension little cooler while US officials say diplomatic paths remain.
  • Sector performance: Consumer discretionary (+2.05%) sees carry over support from Fri; Information technologies (+1.33%); Communication (+0.75%). flipside: Consumer staples (-0.45%) Financials (-0.40%) lead underperformers.
  • Option volumes were fairly muted but continued to favor buying downside put insurance or skew plays: 15,000 short Sep 97.87/98.50 put over risk reversals, 7.5.
  • After the bell, 2-Yr yield is up 0bps at 1.1627%, 5-Yr is unchanged at 1.6127%, 10-Yr is up 1.1bps at 1.7802%, and 30-Yr is up 2.7bps at 2.1002%.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.